Godstone leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Godstone will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Godstone,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Godstone valuers.
Last Christmas Aiden, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Godstone. Having purchased his home two decades ago, the unexpired term was of no significance. Luckily, he recognised he needed to take steps soon on a lease extension. Aiden was able to extend his lease just under the wire last June. Aiden and the freeholder subsequently settled on sum of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,075.
Last Autumn we were approach by Dr B Johnson , who owned a purpose-built apartment in Godstone in March 2001. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical properties in Godstone with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease end date was in 2104. Taking into account 79 years left we calculated the premium to the landlord to extend the lease to be within £7,600 and £8,800 plus costs.
An example of a Freehold Enfranchisement decision for a Godstone premises is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case related to 3 flats. The number of years remaining on the existing lease(s) was 75 years.